Hari maintains her books of account on Single Entry System. His books provide the following information:

Particulars
1st April, 2017
(₹)
31st March, 2018
(₹)

Furniture .............................................................
2,000

2,000

Stock .............................................................
28,000

30,500

Sundry Debtors .............................................................
21,000

34,000

Cash .............................................................
1,500

2,000

Sundry Creditors .............................................................
17,500

19,000

Bills Receivable .............................................................
...

3,000

Loan ............................................................. ... 5,000

Investments .............................................................
...

10,000

His drawings during the year were ₹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.

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Solution

Statements of Affairs

as on April 01, 2017

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

17,500

Furniture

2,000

Capital (Balancing Figure)

35,000

Stock

28,000

Sundry Debtors

21,000

Cash

1,500

52,500

52,500

Statement of Affairs

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

19,000

Furniture

2,000

Loan

5,000

Less: 10% Depreciation

(200)

1,800

Capital (Balancing Figure)

53,900

Stock

30,500

Sundry Debtors

34,000

Less: 10% Reserve for Doubtful Debts

(3,400)

30,600

Cash

2,000

Bills Receivables

3,000

Investments

10,000

77,900

77,900

Statement of Profit or Loss

for the year ended March 31, 2018

Particulars

Amount

(₹)

Capital as on March 31, 2018

53,900

Add: Drawings

5,000

58,900

Less: Capital as on April 01, 2017

(35,000)

Profit made during the year 2017-18

23,900

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Similar questions

Q. Hari maintains his books of account on Single Entry System. His books provide the following information:

	1st April, 2018 (₹)	31st March, 2019 (₹)
Furniture	2,000	2,000
Stock	28,000	30,500
Sundry Debtors	21,000	34,000
Cash	1,500	2,000
Sundry Creditors	17,500	19,000
Bills Receivable	...	3,000
Loan	...	5,000
Investments	...	10,000

His drawings during the year were ₹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.

Hari maintains his books of account on single entry system. His books provide the following information.

$\begin{matrix} Liabilities & Jan.1.2012 & Dec.31.2012 (R s) & (R s) Furniture & 200 & 200 Stock & 2, 800 & 3, 050 Sundry Debtors & 2, 100 & 3, 400 Cash & 150 & 200 Sundry Creditors & 1, 750 & 1, 900 Bills Receivable & - & 300 Loan & - & 500 Investments & - & 1, 000 \end{matrix}$

His drawing during the year was 500. Depreciate furniture by 10% and provide a reserve for bad debts at 10% on sudry debtors. calculate profit.

C maintains his books according to Single Entry System. Following figures were available from the books for the six months ended 31^st December 2017:

Particulars	1st July, 2017 (₹)	31st Dec. 2017 (₹)
Plant and Machinery	1,50,000	1,40,000
Debtors	65,000	60,000
Cash and Bank Balances	25,000	31,000
Stock	40,000	45,000
Creditors	9,000	10,000

Adjustments:

(a) He had withdrawn ₹ 200 in the beginning of every month for household purposes.

(b) Depreciation on Plant and Machinery @ 10% p.a.

(d) During the period, salaries have been prepaid by ₹ 500 while wages outstanding were ₹ 1,000.

(e) Interest on drawings to be reckoned @ 6% p.a.

You are required to prepare the Statement of Profit or Loss for the half year ended 31^st December, 2017, followed by Revised Statement of Affairs as on that date.

Q. Roshan, whose accounts are maintained by Single Entry System, acquired a retail business on 1st April, 2017. He had ₹40,000 of his own and he borrowed ₹ 20,000 from his wife. He paid ₹15,000 for Goodwill, ₹5,000 for Furniture and ₹35,000 for Stock.
Total cash received by him during the financial year from the Debtors was ₹2,30,000. His payments were:

	₹
Purchases	1,56,000
Salary and Wages	21,400
Trade Expenses	7,200

Rent:

For business premises	5,920
For private house	2,960
Payments made for domestic purposes and drawings	26,400

At the end of the year, the Stock was ₹37,500. He owed ₹13,500 to Creditors for goods and his customers owed to him ₹15,000. Provide 5% for Depreciation on Furniture, Interest at 5% on wife's Loan and ₹1,000 for Doubtful Debts.
Prepare the Cash Account, the Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet at the close of the year.

Q. Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − ₹ 1,30,000 Drawings during the year ₹ 50,000
Closing Capital − ₹ 2,00,000 Profit made during the year ₹ 1,00,000

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Particulars		1st April, 2017 (₹)	31st March, 2018 (₹)
Furniture	.............................................................	2,000	2,000
Stock	.............................................................	28,000	30,500
Sundry Debtors	.............................................................	21,000	34,000
Cash	.............................................................	1,500	2,000
Sundry Creditors	.............................................................	17,500	19,000
Bills Receivable	.............................................................	...	3,000
Loan	.............................................................	...	5,000
Investments	.............................................................	...	10,000

Statements of Affairs as on April 01, 2017
Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	17,500	Furniture	2,000
Capital (Balancing Figure)	35,000	Stock	28,000
		Sundry Debtors	21,000
		Cash	1,500

	52,500		52,500

Statement of Affairs as on March 31, 2018
Liabilities	Amount (₹)	Assets		Amount (₹)
Sundry Creditors	19,000	Furniture	2,000
Loan	5,000	Less: 10% Depreciation	(200)	1,800
Capital (Balancing Figure)	53,900	Stock		30,500
		Sundry Debtors	34,000
		Less: 10% Reserve for Doubtful Debts	(3,400)	30,600
		Cash		2,000
		Bills Receivables		3,000
		Investments		10,000

	77,900			77,900

Statement of Profit or Loss for the year ended March 31, 2018
Particulars	Amount (₹)
Capital as on March 31, 2018	53,900
Add: Drawings	5,000
	58,900
Less: Capital as on April 01, 2017	(35,000)
Profit made during the year 2017-18	23,900